2010年-ECB欧洲央行_Commission_public_consultation_on_short_selling_-_Eurosystem_reply_10页_131kb

Eurosystem Reply to Commission Public Consultation on Short Selling

Core Content

The Eurosystem supports the Commission's initiative to propose a harmonised EU regime on short selling practices, particularly in the context of the financial crisis and the need for greater transparency. The response outlines the rationale for regulation, the risks associated with short selling, and the necessity of a coordinated approach across the EU and with non-EU countries.

Main Views

General Considerations

• Role of Short Selling: Short selling can enhance market efficiency, reduce volatility, and improve liquidity. It also helps prevent market bubbles.
• Risks in Crisis: During the financial crisis, short selling on certain instruments raised concerns about:
  • Disorderly markets: The potential for rapid and disruptive price corrections.
  • Market abuse: Naked short selling could be used to manipulate prices or distort markets.
  • Settlement disruption: The risk of failing to deliver securities, especially in government bond markets.
• International Context: Regulatory actions such as bans on naked short selling and disclosure requirements have been adopted globally, and the Eurosystem supports the coordination of such measures to ensure effectiveness.

Transparency Requirements

• Scope of Application: The Eurosystem supports the CESR Report's proposal for transparency, but suggests that it should be applied primarily to EU shares and sovereign bonds.
• Two-Tier System: A system where significant net short positions are notified to regulators and, in some cases, publicly disclosed, is supported. This allows regulators to monitor and respond to potential risks.
• Public Disclosure: It is acknowledged that public disclosure can help identify overvalued instruments, but must be balanced with the risk of reducing market liquidity or causing herding behavior.
• OTC Derivatives: The Eurosystem supports the regulation of OTC derivatives, including central counterparty (CCP) clearing, reporting to trade repositories, and ensuring their safety and soundness.

Uncovered Short Sales

• Naked Short Selling: While risks exist, such as settlement failures, a complete ban is not supported due to potential adverse effects on market liquidity and pricing efficiency.
• Emergency Measures: The Eurosystem supports temporary restrictions on short selling in crisis situations, particularly when there is significant price volatility or market abuse.
• Buy-In Procedures: The Eurosystem supports the requirement for buy-in procedures in case of settlement failures, with a suggested base period of T + 4 for triggering such procedures.

Exemptions

• Market Making Activities: Exemptions for market making should be limited and clearly defined to exclude proprietary trading.
• Non-EU Markets: Exemptions for instruments where the primary market is outside the EU are not supported, as they could lead to regulatory arbitrage.
• Impact of Exemptions: Exemptions could affect market functioning, especially if they allow for opaque trading practices. Clear definitions and reporting procedures are necessary to ensure transparency.

Key Information

• Scope of Instruments: The Eurosystem supports transparency for EU shares and sovereign bonds, but suggests a more tailored approach for other instruments.
• Regulatory Coordination: Coordination between EU authorities and non-EU countries is essential to prevent regulatory arbitrage and ensure market stability.
• Enforcement: Effective enforcement mechanisms, including on-site inspections and penalties for settlement failures, are necessary to ensure compliance.
• ESMA Role: ESMA should play a central role in coordinating emergency actions, but national authorities must be able to act swiftly in such situations.

Conclusion

The Eurosystem advocates for a harmonised EU framework on short selling that balances transparency and market efficiency, with a focus on sovereign bond markets and OTC derivatives. It supports temporary restrictions in crisis situations, notification and disclosure regimes, and coordinated enforcement to ensure the orderly functioning of financial markets.